RBI makes investment overseas easier

The Reserve Bank of India (RBI) issued a notification that will formalise the liberalised remittance scheme of $50,000 for resident individuals. Till date, a resident individual could invest in overseas companies that are listed on a recognised stock exchange and hold at least 10% stake in a listed Indian enterprise. Now, a resident individual can invest up to $50,000 in any listed foreign company. RBI has also scrapped sub-limits that restricted remittances towards gifts or donations at $5,000. For all remittances, individuals will have to disclose their PAN number and source of funds along with the beneficiary’s name, address and account number. The notification says foreign banks-even those with no branches in India-can sell deposits and other financial services products to residents while Indian banks can act as agents.